Research Report

2011-12

AGRICULTURAL
MARKETING
SYSTEM IN
ASSAM

National
Institute of
Agricultural
Marketing
Report Prepared By
(NIAM)
Hema Yadav
Jaipur Deputy Director
Rajasthan NIAM
2011
 `

Index

Chapter I

Introduction……………………………………………………………………………

Chapter II Agricultural Marketing Environment………………………………………

Chapter III Agricultural Marketing System and Practices………………………….

Chapter IV Management of Markets…………………………………………………………

Chapter V Issues in parallel Market System……………………………………………

Chapter VI Bringing Reforms in Agricultural Marketing………………………….

Chapter VII Promoting Vibrant and Competitive Agricultural Marketing…….

Annexure

Reference
 List of Tables Page No.

1.1 Trend of Agricultural Growth……………………………………….

1.2 Production of Crops…………………………………………………….
2.1 Ownership and management of market…………………………
3.1 Distance from Market………………………………………………….
3.2 Connectivity in Markets……………………………………………….
7.1 Developing Primary Markets………………………………………
7.2 Developing Markets located on border………………………
List of Figures

1.1 Assam- Political Divisions………………………………………….

3.1 Constraints faced by the farmers………………………………
3.2 Annual Throughput of vegetables……………………………..
3.3 Arrival and Dispatch………………………………………………..
3.4 Annual Income of the Markets…………………………………
4.1 System of Sale by farmers………………………………………
4.2 Collection of Cess…………………………………………………..
4.3 Facilities in Market………………………………………………..
7.1 Example of setting markets………………………………..
 Acronyms

AAMB- Assam Agricultural Marketing

Board
SAMB- State Agricultural Marketing
APMR- Agricultural Produce Board
Marketing Regulation
PMY – Primary Market Yard
APMC-Agricultural Produce
SMY- Secondary Market Yard
Marketing Committee
PRI- Panchayat Raj Institution
CIC- Community Information
Centre PPP- Public Private Partnership

GSDP- Gross State Domestic Product ULB- Urban Local Bodies

RMC- Regulated Market Committee

ICT- Information and

Communication Technology
 Foreword
Reforms in agricultural marketing system are intended to improve the efficiency
and effectiveness of the marketing system so that the benefits such as increase in
rural income, remunerative and profitable price to farmers and affordable
supplies of food stuff is realized.
There is good deal of variation in the operation and marketing system from one
region to region of the country. It needs a careful study of the specific needs of
that Stat its demography and society. The Agricultural marketing system in
North East India is distinct in terms of heterogeneity, multifunctional and
traditional. Reforms in marketing system have to balance the present needs and
the same time provide an enabling environment for investment, innovation and
development.
The present study on Agricultural Marketing System in Assam was assigned by
Committee of State Agriculture Marketing Ministers to National Institute of
Agricultural marketing (NIAM). The objective of the study the status of
agricultural marketing system, ownership, operation & management and to
study the problems in implementing APMR Act with the view to assess the need
for improving the agricultural marketing system of Assam.
A comprehensive analysis of the existing status of the markets, ownership and
management has been done which is based on primary data and supported by
secondary data. The study suggests that markets need to be provided with basic
infrastructure and Assam Agricultural Marketing Board needs to play a
proactive role in providing infrastructure, ensuring fair trading practices and
bringing changes in collection of market fees and other charges. It is also realized
that rural periodic markets also need to be upgraded and linked with the
wholesale markets for better realization. The environment needs to be conducive
to bring public private partnership in creating value in training, extension and
creation of facilities.
The idea is not to have a parallel competitive system to the existing one, but to
develop a professional and a modern system around it. The proposed action plan
suggests and covers the key area e.g Market regulation, market infrastructure,
marketing extension, agribusiness and entrepreneurship and rural innovations in
Assam.

Dr R P Meena, IAS
Director General

Executive Summary
Overview
1. Agricultural marketing system in Eastern and North-Eastern States is distinctly
different from the other states in the country. It is observed that, the ownership
structure and functioning of the markets in these states is heterogeneous. Hence,
the argument put-forth by these states is that, it is rather difficult to implement
the reforms process initiated by GOI in the absence of uniformity in the
functioning of the markets.
2. As per the decision taken in a meeting of Committee of State Agriculture
Marketing Ministers, held on 25th April, 2011, the present study was assigned to
National Institute of Agricultural Marketing, Jaipur with the objective to study
ownership and management
Agricultural Marketing Environment
3. Multiplicity of regulatory Acts- Assam Agricultural Produce market act 1972,
Panchayat Act 1994 and Municipal Act 1956 acting in parallel has resulted in
absence of unidirectional development. The APMR act has been amended in 2006
to make provisions for contract farming, direct marketing and private markets

4. Agricultural and horticultural production of the Assam State are serviced

through more than 1100 rural weekly markets and a network of 75 primary
wholesale Markets & 30 secondary wholesale market. Besides these there are
other markets which are under Town Committee and District council.

5. The markets operate under pressure in terms of infrastructure, service and

facilities, introduction by innovations, new technologies etc. The public sector
organizations which operate the markets had little perception about putting in
place the proper marketing system for produce transacted in the market. These
organizations earned income from market tax or cess and had no mandate to
plow back revenue so earned towards the development of markets and
marketing system. The increase in agricultural production and population of the
Assam State have exerted pressure on agricultural markets resulting in severe
congestion and making them inhospitable to producers, buyers and consumers

6. In the 24 markets under the regulation of the APMR Act, the primary focus has
been on revenue collection relegating facilitation such as market information
system, infrastructure, and extension to second place.
7. The system of collection of market fees at the check gate has been a major
obstacle in development of markets. The system needs to be abolished to develop
a orderly system of marketing in Assam
Strengthening Access to markets
8. Farmers of Assam have sufficient market surplus, with a market within 5 km.
However, the Physical access to market is constrained by bad condition of the
road and high transportation cost. The rural markets often become inoperable
because of water logging.

9. Farmers sell their produce to a weekly market within close proximity. While
deciding which market to sell to, the most important factor is the price. Distance
from the market and related transportation cost followed by infrastructure
facilities are other considerations.
10. Farmers get knowledge about prices through word-of-mouth which is often
unreliable making the farmer unable to demand the right price.

11. The markets with weekly periodicity have been handling agricultural and non
agricultural products for last 40 to 50 years. The marketing system is in dire need
of attention for development of infrastructure, expansion of market network and
channels to help in delivering the benefits of marketing opportunities.
12. One of the major infrastructure constraint in all the markets is unavailability of
electricity. Since markets function during evening and functions till night,
markets function under gasoline lamp or diesel generators which exert extra cost
on the farmers.
13. At rural markets and primary markets, only unauthorized middlemen or agents
of outside district operate as buyers. These middlemen neither maintain any
documents nor issue any receipts. The method of sale is traditional, non
transparent and coercive.
14. The annual income of markets reveal that the Municipality Markets generate
highest income and function as major markets for arrival. However there is a
overlap in the functions of markets under Municipal Bodies and RMC.
15. The alternative management system of the prevailing markets can be engaging
farmer groups, trader association to operate the markets.
16. Among the various vegetable crops, ginger offers tremendous scope for
commercialisation in Assam. There a scope of encouraging organic farming in
pineapple, turmeric, orange etc.
17. In tandem with typical characteristic of service product mandi as service
organization has to be spruced up to measure to measure up the expectation of
the different stakeholders .There should be a service delivery culture.
18. The Study suggests that a electronic system of weighment be introduced in the
markets to bring transparency
19. The prevailing auction system of giving markets to lesse needs to be replaced by
having a open auction system to have better participation.
20. The study suggests that in Assam Agricultural Marketing Board has to play a
major role in developing basic infrastructure in the markets.
21. Promoting the development of efficient and competitive system that can
effectively respond to the changes require greater role of public and private
sector in providing enabling environment for growth, increasing, enhancing
market facilities and market information.
22. The social and cultural fabric of the state has shown traditional set up of the
communities where the community groups in tribal areas have taken
responsibility of shared resources and groups activities in rearing ducks, pigs,
weaving, collection of honey, crafting etc. The study finds well established grass
root collectivism in taking economic activity. The State has the potential to bring
transformation through rural innovation and knowledge sharing. A further
investigation in documenting the rural technology sharing and innovation will
further provide guidance bringing vital changes through participation and due
cognizance of local needs
23. The summary of the conclusions and suggested action plan is shown in the table
that follows
 CHAPTER 1
Introduction

1.1 Agricultural marketing system in Eastern and North-Eastern States is

distinctly different from the other states in the country. It is
observed that, the ownership structure and functioning of the
markets in these states is heterogeneous. Hence, the argument put-
forth by these states is that, it is rather difficult to implement the
reforms process initiated by GOI in the absence of uniformity in the
functioning of the markets. It is also argued that, implementation of
the APMR act is not effective in these states.
1.2 As per the decision taken in a meeting of Committee of State
Agriculture Marketing Ministers, held on 25th April, 2011, the
present study was assigned to National Institute of Agricultural
Marketing, Jaipur. Hence, the study is being proposed with the
following specific objectives:
1. To study the status of agricultural marketing in Assam
2. To study the ownership, operation and management of existing
markets in Assam
3. To study the problems in implementing the Agricultural
Marketing Regulation Act in Assam
4. To assess the needs for improving the agricultural Marketing
system in Assam
1.3 The study on Agricultural Marketing System in Assam is based on
primary data collection through interview of farmers, traders, market
secretaries, contractors etc of regulated market, gram panchayat and
municipal markets. The study draws inferences and has been built on
an earlier Study done by NIAM under AACP for the State of Assam
and has also used the data of the project. Discussion with Assam
Agricultural Marketing Board officials, visit to various mandies has
been useful to understand the different structure of markets and their
operation
1.4 Performance of Agriculture in Assam: Agriculture and its allied
activities plays an important role in the socio- economic development of the
State of Assam as this sector is a major contributor to the State economy as
well as providing livelihood to a significant proportion of the population of
the State. About 99 per cent area of total land mass of the State is rural and
almost 50 per cent of the total land area is utilised for cultivation.
1.5 The net cultivated area of the State is 28.10 lakh hectares (2008-09) and the
per capita availability of net sown area comes to around 0.1 hectare. On the
top of it, 23 per cent of the net sown area is either flood or draught prone. The
average operational holding is 1.15 hectare only and more than 83 per cent of
the farmer family is small and marginal farmers (2008-09). The contribution
of the agriculture sector to the GSDP was pegged at 4.1 per cent in 2009. This
sector continues to support more than 75 per cent population of the State
directly or indirectly providing employment to more than 53 per cent of the
workforce.The details of Assam at a glance are at Annexure I
1.6 The growth of the agriculture and allied sector was not encouraging during
the last three consecutive Five-Year Plan [8th, 9th and 10TH Five-Year Plan]
periods. This depressing performance continued even during the first year of
11th Five-Year Plan, The growth in agriculture has been reversed since 2007-
08 and recorded a growth rate of 1.20 during 2008-09 and achieved a growth
rate of 2.17 in 2009-10(Table 1) the main reason of achievement of this growth
is due to the bumper production of winter wheat.
TABLE 1.1 -TREND OF GROWTH OF AGRICULTURAL SECTOR
(Figure in percentage)
2005-06 2006-07 2007-08 2008-09 (P) 2009-10 2010-11 (A)
.30 (-).27 .23 1.20 2.17 3.15
Source : Agriculture at a Glance, Department of Agriculture

1.7 The growth of the Agriculture and Allied sector is projected at 3.15 percent in
2010-11(A) as the State has experienced sufficient rainfall during the kharif
season which is congenial for rice cultivation in the State.
1.8 The production and productivity of all major crops has increased
significantly in 2008-09 by achieving the total production of 120.35 lakh MT.
The implementation of National Food security mission in 13 states has
achieved a record rice production. The production of Rice in 2009-10 was
42.60 lakh MT. Similar trend was also visible in Oilseed, Sugarcane, Jute.(
Table 1.2)
 TABLE 1.2- PRODUCTION OF CROPS ( In lakh MT , Jute in Lakh bales)

Crop 2006-07 2007-08 2008-09 (P) 2009-10

Rice 29.16 33.19 40.70 42.60

Oilseed 1.37 1.45 1.53 1.88

Sugarcane 10.55 9.80 11.00 11.61

Fig 1 5.59 6.57 6.47 6.75

Districts of
Assam Jute
Source : Agriculture at a Glance, Department of Agriculture

1.9 Land Utilization: As per the Land Utilization Statistics for the year 2008-09,
the total reporting area of the State was 78.50 lakh hectares. Out of the total
reporting area, net sown area constitute 35.80 percent[28.10 lakh hectares],
23.61 percent was under forest, land not available for cultivation 26.26 lakh
hectares or 33.45 percent of the total reporting area and other uncultivable
area was 4.32 lakh hectares or 5.5 percent . While Fallow land constitutes 1.63
percent of the total reporting area with around 1.28 lakh hectares, land under
still water and water logged area jointly constitutes 1.78 lakh hectares or 2.27
percent.
1.10 Assam covers an area of 78,438 sq. km. with a population of 26638407.
The percentage shares of area and population of the State to that of the
country are 2.4 and 2.6 respectively. The State can be divided into three
distinct natural regions viz. The districts (27) are further subdivided into 56
sub-divisions and 145 revenue circles ( Fig 1.1)

Fig 1.1- Assam –Political Divisions

 CHAPTER II

Agricultural Marketing environment in Assam

2.1 Agricultural markets function as an important link connecting rural

production centers to the consumption and distribution centres in the State.
They constitute themselves a system of supply and distribution as both
wholesale and retail. These markets also facilitate formation of price that is
accepted by the distribution chain.
2.2 Agricultural and food marketing environment can be categorized in four
main sub-systems, viz. production, distribution and consumption and
regulatory. The key players in the chain of activities that connect food and
agriculture are the farmers, intermediaries, the food processors and the
consumers. In practice, each sees the agricultural food marketing system
from a perspective of self-interest and these interests are sometimes in
conflict.
2.3 While the agricultural production in Assam has reached to 120 lakh MT in
last 60 years, the number of markets servicing agricultural production is
more or less static. The youngest market in the State is 15 years old. Some
1200 markets channelize agricultural and allied products of the state for last
50-60 years. The population of the state has also reached nearly 3.0 crores in
past 60 years but there has been no corresponding increase in the number of
the markets serving producer, traders and consumers.
2.4 The markets in Assam under different ownerships operate under pressure
in terms of infrastructure, service and facilities, introduction by innovations,
new technologies etc. The market committees operating the markets under
different systems earned income from market as cess and had no mandate to
plow back revenue so earned towards the development of markets and
marketing system. The increase in agricultural production and population of
the Assam State have exerted pressure on agricultural markets resulting in
severe congestion and making them inhospitable to producers, buyers and
consumers.
2.5 The agricultural marketing environment is largely governed by the Assam
Agricultural Produce Market Act 1972, Panchayat Act 1994, and Municipal,
Act 1956. (Table 2.1)
2.5.1 Regulated Market System: The Assam Agricultural Marketing
Board (AAMB) has established 24 Regulated Market Committees,
 20 Primary Market Yards, 206 Sub-market Yards, 735 Rural
Primary Markets and 405 Wholesale Markets.
2.5.2 The Regulated Market System began in Assam, like in other States
in the country, as far back as in 1972. Assam State Agricultural
Marketing Board has been in existence since 1976 and
implementing the Assam Agricultural Produce Market Act, 1972.
The Assam Agricultural Produce Market Act, 1972 is an act to
provide for better regulation of buying and selling of agricultural
produce and for the establishment of markets for agricultural
produce in the State of Assam. The Regulated Market Committees
(known as APMCs in other States) are functioning at different
places in the State with the objective of regulation of buying and
selling of agricultural produces to eradicate malpractices
prevailing in the trade in urban, semi-urban and rural markets
and also to establish an efficient marketing system, where the
growers may obtain reasonable and competitive price and the
traders receive a fair deal in trading. The purpose is also to
establish a modern market yard, where scientific godowns for
storage, platforms for auction of agricultural commodities, display
yards, traders shop, banks and post offices, are provided with. So
far 24 Regulated market Committees have been declared1.
2.5.3 Collection of Cess: The Regulated Market Committees and the
Board levy Cess on the agricultural produce bought or sold in the
market area at the rate of one rupee for every one hundred rupees
of the aggregate amount for which a notified agricultural produce
is bought or sold as the source of income for implementation of
the provision of Act and benefiting the agriculturist and trader of
the state.
2.5.4 Although most of the Rural Markets are owned by Panchayat and
operated and managed by the lessee (mahaldar) who collects
sitting fees etc, wherever they have been notified under Assam
APMA 1972 as PMY and SMY, the regulated market committee
is also collecting the market fees as per the stipulations of the
APMA Acts and Rules. This becomes a case of dual recovery of
market fees/charges, and, which goes against the interest of
market users

1
www.asamb.in
 2.5.5 During the visit to Regulated markets, it was found that although
auction platforms are existent, there is no auction in trading
taking place. Many of the markets where the land is owned by
RMC but it has been occupied by Army or CRPF. The Market
secretary collects the market fees at the check gates .
2.5.6 The Assam Agricultural Produce Market Act, 1972 has been
amended in 2006 to make provisions for (a) Private Marketing (b)
Direct Marketing (c) Consumer-Farmers Market and (d) Contract
Farming as per guidelines of Govt. of India.
2.5.7 The State Agricultural Produce Market Act aims at regulating
marketing practices mainly at Assembly Market Level. It has not
succeeded in getting administrative or managerial control over
Rural Weekly Market through which 60-65% agricultural and
allied products of the State are serviced.
2.6 Rural Market System:
2.6.1 There are approximately 1150 rural markets in Assam. Locally
these are known as haats or bazaar. The rural markets are
managed by Anchalik Parishad (block level) .The Markets are
leased annually by inviting bids. The bid for one market varies
from 5 lakhs to 15 lakhs depending on market size. Anchalik
Parishad receives money from lessee of which 40% is retained by
Anchalik Parishad, 40% is given to Gram Panchayat as the
ownership of the land lies with Gram Panchayat and rest 20% is
given to Zila Parishad.
2.6.2 The rural markets mainly function as the primary markets which
serve a small area of 1.5 to 3 km radius and operate once or twice
a week. There is relatively small market attendance of 500 to 2000
person per market day where farmer –producers sell their surplus
to local consumers.
2.6.3 There are also local assembly markets which serve a larger area
with a radius of 3 to 8 km and on average 2000 to 5000 people
attend these markets per market day which is usually twice a
week. Here the farmer has an opportunity to sell to either local
consumer or to itinerant trader. In some of these markets livestock
is also assembled for sale in bigger markets. Also non farm
products for daily needs are sold.
2.6.4 In Rural Markets, trade is characterized by direct sales of small
quantities of produce by producers to village traders and by retail
 sales to rural consumers. The Rural Markets normally form part of
a local trade network and are usually arranged on a periodic basis,
on specific weekdays. They are more commonly organized at a
central place in a village or district centre or beside a village’s
access road. The market circuits are an example of commodity
flow are inherent characteristic of rural periodic markets.
2.6.5 Rural Markets in Assam generally perform three functions, viz,
(1) selling of local produce within the area (ii) assembly of local
products for selling to other areas and (iii) retailing of wholesale
lots from other areas in the local area. The selling of local produce
to traders & consumers is the predominant activity in these
markets. Here farmers represent the biggest group either as sellers
or as buyers. At times, farmers retail their produce & become
traders also. Besides, goods, that are not produced locally, are
brought by smaller & occasional traders to retail to local
population. These markets, through their interconnections, are a
farmer's main connection point with the inter and intra regional
marketing system.
2.6.6 The ruling prices in these primary markets are invariably much
lower. Price variations are attributed to lack of infrastructure such
as storage, transport, etc. Due to lack of infrastructure, many times
the farmer is forced to sell at harvest time, at low prices, only to
buy back in off season at higher prices. This highlights the need
for planning of Rural Markets to enable them to play their role
effectively. They can be provided with need based infrastructure
to come up to a level.
2.6.7 Although trading is the basic function of Rural Markets, a
number of other activities take place, which for some market
users are more important. Amongst these are the social functions,
such as meeting other persons and obtaining news, and, other
service functions such as tailoring, repairs, health, catering to
daily needs of life etc. There is an increasing awareness amongst
the rural population about advantages of selling their produce at
market points to secure competitive prices. This, coupled with
increase in Agricultural & Horticultural production, will generate
larger arrivals in Rural Markets. Handling of larger turnovers will
necessitate providing appropriate infrastructure facilities at these
markets. Rural Markets developed appropriately will attract
 produce presently by-passing the market &also become more
price competitive.
2.6.8 Gram Panchayats lease-out these markets annually by inviting
bids. The prime objective is to collect lease-money every year. The
lessee gets busy collecting ground rent, parking fees, bullock fees,
etc. by employing people specifically for the purpose. Farmers
and traders visit weekly & daily Panchayat Markets where Lassez
faire approach is prevalent.
2.6.9 During the various visits to Rural Markets of different districts, it
was found that facilitating services to both farmers & traders are
absent in general. Nobody owns responsibility towards marketing
efficiency: price, operational, innovative or for that matter of any
kind. It has been a long felt need to address the marketing issues
to improve and strengthen the marketing system to become a
stronger link of the State's agricultural economy.
2.7 Municipality and Town committee markets:

2.7.1 The markets operated and managed by Urban Local bodies

occupy a prominent position in agricultural marketing scenario.

2.7.2 Municipal finance can be treated separately under two distinct

groups viz, Municipal Boards and Town Committees (MBs/TCs)
and Guwahati Municipal Corporation (GMC). MBs/TCs are
governed by the provisions of the Assam Municipal Act, 1956 (as
amended). These bodies are under the administrative control of
Urban Development Department (UDD) and administered
through the Directorate of Municipal Administration, Assam.
While GMC is governed by the provisions of the Guwahati
Municipal Corporation Act, 1971, and it is under the
administrative control of Guwahati Development Department
(GDD).2

2.7.3 An important source of revenue of ULBs is tax/rent on private/

municipal markets. Under Section 68 (f) of the Assam Municipal
Act, 1956 taxes are collected by ULBs from private markets. While
under Section 148, rent is collected from shops and markets
owned by them. It was also observed that shops and markets are
also leased to private parties through sealed tender system.

2
http://sfcassam.nic.in/report/MUNICIPALFINANCES.pdf
 However the fees collected from rent from market and trades is
not plowed back towards the improvement of the markets. These
markets have good trade and the facilities are better than the
Rural Markets. But the revenue earned from trade is not used for
development instead it is used to pay the rents, bills and
Gram panchayat Municipality and Regulated
Markets Town Committee Market

maintenance a case of municipal market of Barpeta road is shown

in Box

2.7.4 Although the MB and TC markets should function as retail

markets only but in Assam these markets are both wholesale and
retail markets with trade in both Agri and non agri products.
Management Anchalik Parishad Municipal RMC
Gram Panchayat Corporation Market
Block DO committee

Committee Bazar committee with bazar committee with elected

sellers as members sellers as members body
headed by
chairman

Tendering BDO and Gram -

Process Panchayat

Lease amount 1. to 6.5 lakh -60 lakhs for

per year handling all the
commodities -18 to 20
lakhs for handling all
the vegetables
Share of lease 40% GP, 40% AP, 20% 100% to Town 50% to
amount ZP Committee AAMB

Cess/fees grains and vegetables grains- rs 10-20 1%

rs 5-10 Per day per seller vegetables-5-15

Income per 50,000- 5 LAKH 1-10 LAKH 1-10 LAKH

annum
Table 2.1 – Ownership and Management of Markets
 CHAPTER III

Agricultural Marketing System and Practices

3.1 Age of the markets: The markets in the state have been functioning since
decades. The markets in North Cachar Hills, Karbianglong and Sonitpur have
been in existence for last sixty years. These districts are dominated by tribal
population and the historic markets have their own anthropological importance.

3.2 Most of the markets are of age between 15 to 40 years and it is also important to
note that only 9 markets are upto the age of 15yrs. Market development since last
ten years has been slow and hence congestion and stagnation in development is
perceptible. The markets with weekly periodicity have been handling
agricultural and non agricultural products for last 40 to 50 years. The marketing
system is in dire need of attention for development of infrastructure,
expansion of market network and channels to help in delivering the benefits
of marketing opportunities.

3.3 Access to Market: The market survey of 196 market Distance from Market ( Km) %
reveals that the main markets are in approach of only Upto 5 kms 71
upto 5 km (Table). Majority of the farmers have access 5 to 10 22
10 to 15 3
to the market but the road conditions are bad.60% of
15 to 20 1
the farmers have unpaved roads to travel to the
Above 20 2
market. Common mode of transport used by farmers
Table 3.1 Distance from Market
is the bicycle. Depending upon the volume, cycle
thela, truck, minivan wooden cart, etc. are hired for transport. The constraints to
physical access to markets are the bad condition of the roads and the high
transportation costs.( Table 3.1)

3.4 Connectivity of Markets by Phone and Internet. The study shows that markets
are poorly linked with Telephone and Internet facilities, only 45% markets are
linked with telephone facility and rest 107 markets have no access to ICT
services. Following table shows distribution of markets by connectivity.( Table
3.2)

Table 3.2 CONNECTIVITY IN MARKETS

S. No. Nature of connectivity No. of Markets

1 Telephone 85
 2 E-Mail (Bongaingaon & Dibrugarh) 2
3 Internet Access ( Barpeta) 3
Total 90
4 No Telephone Services 107

3.5 Access to Market Information: Farmers have no knowledge about what price
they should ask for the produce during the transaction. Many of the farmers gain
first hand information about prices from fellow farmers and traders. Paddy
producers go by the prices fixed by the millers. Few educated farmers keep in
mind cost of production, transportation, etc. while negotiating in the market or
even with the miller. As many as 64% of the farmers are not able to decide to sell
on a certain price.

3.6 Access to formal credit: There are 21 commercial banks with a network of 323
branches. The banking facilities of the rural people are being served by a network
of Gramin Vikas Banks. The Assam Co-operative Apex Bank is the only State Co-
operative Bank which advances credit to the farmers. Availability of agricultural
credit in Assam per hectare is only 30% of the national average. According to RBI
report, 22 districts of the State remain under banked. The average area covered
by the bank branches operating in the state is as large as 60 Sq Kms per branch
and per capita credit disbursement to farmers in Assam was Rs 91 only against
the all India of Rs 1122 in 2004-05.

3.7 Marketing channels: So far as marketing of the crop is considered, paddy is

generally sold to Wholesalers and Millers. Traders or Miller’s representatives
generally visit the farmers and purchase the produce. Vegetable crops like
tomato, gourd, okra, cauliflower and chilly are commonly taken to the market
and sold through negotiations considering prices prevailing on the market day.
Amongst fruits, Traders buy bananas from the farmers place while Assam lemon
is sold in the market place. Vegetables in smaller quantities are even retailed by
farmers themselves on the market day. Itinerant traders locally called ‘Faria’ are
common in selling paddy. These traders collect paddy from the farmers and sell
it either in the market to wholesalers or rice millers directly

3.8 At the village haats and primary markets, there are, as such, no authorized
commission agents. Only unauthorized middlemen or agents of outside districts
operate as the buyers. These middlemen neither maintain any documents nor
issue any receipts. In the larger terminal markets like Maskhowa (Guwahati),
several brokers operate and charging commission on “per pack basis”. In this
 market also, the transactions are not documented and no record is maintained
which makes the marketing system non transparent.

3.9 Constraints faced by

farmers in marketing:
Market price of
commodities is the most
serious problem faced by
the producers. It has been
found that the low price in
the markets is a constraint to
farming in Darrang, Cachar,
Nagaon and Karbianglong.
Fig 3.1 Constraints faced by Farmers
Similarly natural disasters such as floods in Upper and Lower Brahmaputara
Valley are major obstacles for production in Assam. During floods the roads and
markets are waterlogged and restraints the commodity flow. Shortage of money
to buy inputs has also been a constraint realized by farmers.The other problems
faced by the farmers are bad condition of roads, no bullocks for farm land
preparation, and, high cost of transportation.( Fig 3.1)

3.10 Price access: The large proportion of marketable surplus (60-70%) is sold at
village level giving rise to the problem of price access (farmers access to receive
price discovered under competitive setting in large markets) as these
transactions take place in a non-competitive setting with farmers having unequal
access to price information. In unregulated markets, there are low trading
volumes and a market setting represented by a large number of sellers and a
relatively small number of buyers. Although the regulated markets clearly spell
out the rules of price discovery, the study point out that the traders in these
markets show collusive tendencies, which adversely affect the fair price
discovery and benefits received by the farmers from such markets.

3.11 It is very important to develop the marketing system in such a way that
competition is created in smaller markets by developing proper channels and
adequate number of buyers to create competitive markets so that small farmers
can participate in the markets.

3.12 Access to market Information: Market information on commodity

market arrivals and suppliers are of much importance for small and marginal
farmers. Given the poor quality of infrastructure, to reach out over 38 lakhs
farmers spread over 26312 villages in Assam is an uphill task. The diversity of
ecological situations and low literacy of farmers add to this challenge further.
The lack of information and communication not only hinders transfer of
technology, it also leads to loss in income
Source of information for farmers are:
and exploitation of farmers by middle  Fellow Farmers : 66%
men. The markets are the first point of  Traders : 33%
 News paper : 0.5%
contact and farmers depend on the  Television : 0.5%
system to provide information on prices  Others : NIL
and arrivals. To cater the needs of the
farmers, the markets should be at least connected with telephones. As many as
40% farmers are aware that transportation cost should be considered while
pricing in the market. Twenty percent farmers ask prices keeping in mind the
production cost of the produce. Sixteen percent farmers however depend on co-
farmers and traders (8% each) for what price to ask for or in which market to
sell? Only 8% farmers acquaint themselves with ruling market prices before
going to markets for selling the produce.

3.13 Co-farmers are a predominant source of information for farmers in Assam.

The regulated markets of Assam are connected with Agmarknet and, the market
secretaries enter the data related to prices, arrivals and other specifications, but,
the information provided on Agmarknet does not reach the farmers. Community
information centers (CIC) are located at each block head quarter are run by State
NIC offices. Regulated market committee conveys prices to CIC which are
loaded on website. Free Internet is available at block level. But facility is hardly
used in the absence of power /high tech mechanism involved.

3.14 Unavailability of Electricity: One of the chief infrastructure constraints of

all the markets is unavailability of electricity. Since most of the periodic markets
function during evening hours and function upto night, electricity is a prime
necessity. In absence of electricity, lessee provides genset for which he charges Rs
3-4 per person for electricity. The lessee takes advantage of the absence of the
basic facilities and makes profits taking undue advantage of the situation.

3.15 Arrival and Markets; Commodity wise Market Arrivals, wholesale price
and value of commodities is as shown in Annexure Some of the major
commodity arriving in market and the seasonal trend, price and pattern is
discussed below:

3.15.1 Rice : Rice is a major staple food of Assam. Rice is a three-season crop,
viz, autumn (Ahu), winter (Sali) and summer (boro) in Assam. A notable change
in rice production system is the introduction of boro rice in Assam. Boro rice is a
low risk option with yield being 30 to 40 percent higher than the normal level.
The winter rice is medium and fine quality rice. The study of 196 markets of
Assam State shows that out of a total production of 42 lakh MT of rice, annual
arrivals at the markets is 8.8 lakh MT. The districts of Darrang Shivsagar,
Goalpara, Shivsagar, Cachar and Karbianglong has markets doing business in
rice. Amongst the markets, Sibsagar Municipal Market emerges as the largest
market for receiving rice. The market receives 12.97% of the total arrivals. As
seen from the table municipality markets are important business centres for rice
as compared to Panchayat markets and regulated markets.

3.15.2 Betel leaf and Areca nut: There are about 100 varieties of betel vine in the
world, of which about 40 are found in India. Assam state is an important
producer of betel leaf and areca nut. Areca nut and betel leaf are produced in the
homestead garden and every farmer family owns an areca nut tree. Betel, being
'vine', it grows in the shade and also it entwines the areca tree. The betel leaves
are brought in to the markets as fresh leaves packed in a bunch. Each bunch,
called as Gussi, has 20 leaves, and, twenty gussi makes one disha which
comprises of 400 leaves. The price of the betel leaves in a market varies from
variety to variety. The price is also observed to vary from morning to evening,
since the leaves are highly perishable in nature. Producer normally receive a
price which ranges between Rs 100 to Rs 300 per disha (400 leaves). In winter,
which is the peak season, betel leaf is sold at Rs 3 per leaf. The betel leaves are
sold at very low prices in the rainy season; the producers end up fetching a price
of 50 Paisa per leaf

3.15.3 Vegetables:

Vegetables arrive in the

markets in early season, Main
season and late season.
Markets receive vegetables
from nearby

villages which are in periphery

of 5-10 kms. Arrivals of
vegetables are maximum in
Fig 3.2- Annual Throughput of vegetables
main season, i.e., October-December; 35% of arrivals reach in main season, 18%
in late season and 12% in early season. Amongst all districts, Barpeta, Darrang
and Kamrup receive maximum arrivals. The arrivals of vegetables comprises of
 Lady fingers, tomato, chillies, cabbage, pumpkin, Brinjal, potato. Kharupetia
Regulated Market is major market for arrivals of vegetables followed by Barpeta
Municipality market.( Fig 3.2)

3.16 Arrival and Dispatch

The arrivals in the Guwahati

municipal market flow from
adjoining districts of the State.
Commodities like Areacanut, Paddy,
Brinjal, Potato, Cabbage, Peas,
Pineapple, Oranges, Blackgram ,
Mustard also arrive in bulk from the
markets of Hailakandi, Silchar,
Karimganj and Bhutan which are at
distances of 210 to 520 kms. This is
an important market from the point Fig. 3.3 Arrival and
dispatch
of view of arrivals to the markets as
almost 70% of the arrivals come from these adjoining markets. This market is a
major hub for inter country and inter-district commodities flow. Guwahati
market also performs important function of being a dispatch and a service
market for the adjoining states. The commodities flow to West Bengal,
Meghalaya and Bihar which are at distances of 555,580 and 210 Kms respectively.

Guwahati an important feeder market for nearby districts of Barpeta, Nagaon,

Darrang. The Star diagram exhibits the service area of the market( Fig 3.3) This
market has been the major market owing to better prices, competition, better
services in the market and the facilities available. However it calls for planning
markets within the service area to achieve efficiencies. The study has used this
approach to identify the markets which needs to be developed

3.17 Annual Income of the Markets of Assam:

The income of the

markets is a sum total
of contract amounts
of lessee plus any
other rentals received
by the market
management out of constructions or buildings, if any, in

the market place. In the event where different contracts are given for collection of
fees charges etc. and parking etc; in that case, total amounts of both the contracts
would be the income of the markets. In case of Regulated market the source of
annual income in the market fees, license fees, rentals, penalty etc.

The annual income of markets owned and operated by Municipality committee are
biggest earners. Silchar Municipality market earns Rs 35 lakh annually followed by
Barpeta Road and Kharupetia regulated market.( Fig 3.4)

In 2008-09 the number of markets earning incomes between Rs. 5 to 10 lakhs was
18, and, the incomes of 5 markets was above Rs. 20 lakhs. It has been found that
municipal markets in Barpeta, Jorhat, Nalbari, which are daily markets, have
incomes above Rs. 20 lakhs. Regulated markets under study are also daily markets,
but, the incomes earned by these markets are between Rs. 5-10 lakhs only.

Daily income of the markets: Some examples

Rupahi Market: Mahaldar collects Rs. 3/- per trader. The basis for recovery of fees is the
space occupied for e.g sellers who occupy the space on ground are charged rupees three
each, handcarts are charges Rs. 10/- per cart and people selling small basket are charged Rs.
2/- per basket. The market hums with activities all the year. On an average the Mahaldar
recovers Rs 25,000 on a day per various commodities traded in the market.
As many as 1500 farmer trader, 150 itinerant trader and 2500 retailers are reported
to be conducting business on a market day. The number of visitors has been
estimated at 20,000 on market day.
Juria Market: While the ground rent at the rate of Rs. 3/- per trader is collected on
market days. Certain amount of license fees is also recovered from the traders
operating daily in the market. The ground rent sometimes varies with space
occupied by the individual, space occupied by the handcart or even the volume
occupying the space. The daily income from the market on an average is Rs. 7,000 -
7500 /-.
Users comprise more than 1000 farmer trader, 80 itinerant traders and 1000
retailers. About 15000 people have been estimate to be visiting on a market day.
Bedeti: The market is operated and managed by the contractor locally called
“Mahaldar”. The current year contract amount has been reported to be Rs. 6 lakh
(Rs. Six lakh only) as against the contract amount of Rs. 80,000/- (Rs. Eighty
Thousand only) in 1980. Market has 17 bigha of land out of which 7 bighas are
under encroachment by unauthorized persons. Resultantly, market is held on 10
bighas. There are some thatch and tin shades for sellers to trade in the market.
Nearly 1000 sellers are reported to visit the market on market day for trading. The
numbers of visitors on a market day are reported to be more than 5000. Discussions
with local people indicate that an amount of Rs.10/- is charged from vegetable desk
and other seller in the market as against the slip issued for the amount. However,
same practice does not hold good for livestock. Sheep and goat, pigs & cattle, which
are traded substantially in the market. In case of cattle although the recovery slip is
given for Rs. 20/- , actual amount recovered is Rs. 100/-.
Chengmara: The market is owned by Anchalik Panchayat it is operated and
managed by Mahaldar who employs one temporary person on the market day to
collect ground rent etc and look after the market on his behalf. An amount of Rs 5 is
collected from the traders towards ground rent based on quantity/bundles/pieces
and value of the produce. Average daily collection has been reported to be Rs. 2500/-
during the normal season and the peak season collection have been reported to be
more than Rs. 3000/-
Mandia: An amount of Rs. 5/- is charged from retailers depending on the space
occupied. For others traders basis for collection of charges is Rs.5/- per quintal from
wholesaler. As the market falls under the regulated the previews of Assam State
Agricultural Market Act, the Marketing board collects 2 % market fees in respect of
Agricultural produce notified for the purpose. On an average date market earns Rs.
18,000/-.
Boko: Market fees of Rs 5 to 10 is collected by way of
ground re and Rs 10-15 from retailers who occupy
space. Besides this Rs 10 per 40 kg in case if food grain
and Rs 20 per 10-15 kg of vegetables is charged from
wholesalers. This charge has been fixed by Sub Division.
There are other charges like Rs 50 per poultry bird, Rs 30
per piece of pork, Rs 100 per piglet.
The average daily collection in this market is Rs.
30,000/- in peak season (Nov. to Feb.), Rs.15, 000/- Rs.
20,000/- in normal season (Mar. to July) and Rs.5, 000/-
in lean period (Aug. to Oct.) Market users comprises of
(app.) 7000 farmers, 2500 farmer traders, 1300 itinerant
traders, 5000 retailers and around 4000 consumers.
Titabor: The average daily collection in this market is Rs. 14,000/- in peak season,
Rs.9, 000/- in normal season and Rs.4, 000/- in lean period.
 CHAPTER IV

Management of Markets

4.1 Management by Regulation: To ensure efficient and successful management of

markets, there has to be a legal framework which takes in consideration the
needs of such a market. The market survey shows that rules and regulations
framed with reference to small assembly markets are inadequate and suffers
from enforcement

4.2 The Gram Panchayat Act suffers from enforcement of rules to inculcate good
marketing practices. After the markets are leased out the Zila Parishad should
have supervision on the market charges levied by lesse, the facilities rendered
by lesse, unhygienic conditions prevailing in the markets etc. The contract
agreement between the market committee and service provider, in this case the
mahaldar should have a penalty clause to be imposed in the instances of default.
The trained manpower at block level would be prerequisite to check the
activities of service provider and thereby facilitating better marketing in these
markets.

4.3 The Municipality Act has a role to provide facilities for retail trading for
consumers in the market. It has been found that the markets under municipality
Board and town committees also have wholesale trading of rice, betel nut, fish,
orange, banana etc. There is an overlap of function performed at Municipality
markets and regulated markets. The wholesale functions needs to be segregate
as laid down in the Municipality Act and to be regulated as per APMA act. The
wholesaling of agricultural commodities needs to be transferred to RMC and
brought under APMA

4.4 The Assam Agricultural Produce Market Act of 1972 is an act to provide for
better regulation of buying and selling of agricultural produce and the
establishment of market for agricultural produce in the State of Assam. The Act
was amended in 2006 to allow for provisions laid down in the Modal Act.

4.5 The State Government has constituted a State Agricultural Marketing Board
consisting of a Chairman and 17 other members. The Assam State Agricultural
 Marketing Board (ASAMB), Guwahati was established on 1976, under Section 3
of the Assam Agricultural Produce Market Act, 1972.

4.6 Functions of the Board: The Board performs following functions:

- To coordinate the functioning of the Market Committees

including programmes undertaken by such Market Committees
for the development of markets and market areas.
- To undertake State level planning of the development of
agricultural produce markets.
- To maintain and administer the Marketing Board Fund.
- To give advise to Market Committees in general or any Market
Committee in particular with a view to ensuring improvement in
functioning thereof.
- To supervise and guide the Market Committees in preparation of
plans and estimates of construction programme undertaken by
them.
- To make necessary arrangements for propaganda and publicity on
matters relating to marketing of agricultural produce.
- To grant subventions or loans to Market Committees for the
purposes of this Act on such terms and conditions as it may
determine.
- To arrange or organise seminars, workshops, exhibitions on
subject relating to agricultural marketing.

4.7 Utilization of fund by State Agricultural Marketing Board: Under State

Agricultural Marketing Board 24 Regulated Market committees are functioning
and providing services in different markets of agricultural produce. As per the
act every market committee shall pay 50% of its income derived from license
fees and cess as contribution to meet the expenses of establishment and to carry
development work in the markets. State Marketing Board has created
infrastructure in the markets such as auction platform, retailers shed, drying
platform, shops etc. These facilities have been created in those markets also
which fall in the market area but the ownership and operation of the market
is with bodies other than marketing board
4.8 .Licensing of Market Functionaries: Under Section 13(2) of the Assam
Agricultural Produce Market Act, 1972, licence is issued to the market
functionaries like Traders, Commission Agents, Brokers, Weighmen, Measurers,
 Surveyors, Warehousemen etc., for doing their business in a market area, by the
concerned Regulated Market Committee on payment of such fees as prescribed.
4.9 Sale of Agricultural Produce: The amended act stipulates that agricultural
produce shall ordinarily be sold in the principal market yard/subyard .After the
registration the agricultural produce can also be sold at private market yard and
other places. The act has also been amended to exempt the agricultural produce
covered under contract farming from being sold at any kind of market yard.
This provision enables the
direct sale of the produce
from farmer’s field. The
licensed and registered
traders from outside the
market area may be sold
anywhere in the market
area.
4.10 System of Sale: The Act
specifies that the price of
Fig 4.1 – System of Sale
the agricultural produce
will be settled by tender bid or open auction and no deduction shall be made
from the agreed price from the seller. The market survey of 427 farmers reveal
that only 6% of the farmers had an opportunity in a year to auction their
produce. The farmer from Cachar, Jorhat, Tinsukia and Sibsagar have been able
to sale the produce by auction. As seen in the diagram 52% of the farmers sell
their produce in the market by negotiation method and few farmers also
reflected that “faria”comes to collect the produce.36% of the farmers take the
produce to the local market in this case a weekly market and sells at whatever
price is offered on that market day( Fig 4.1)
4.11 Establishment of private market yards, direct marketing: The amendment
in the act has given the provision of establishment of private market yard,
consumer market by developing infrastructure by any person or group of
person in any market yard. Any person or body desirous of purchasing produce
directly from farmer or establish a market will be required to have registration
with prescribed fees. The power to grant / renew the registration or cancel it
resides with Director. Any dispute arising between the owners of the private
market yard will be referred to the Director.
4.12 Contract farming: As per the APMA Act , contract farming sponsor will be
required to register himself with the Deputy Commissioner of the district. The
contract farming act also has to be recorded with the Deputy Commissioner
 where the contract farming producer resides. Disputes arising out of contract
farming may be settled by Director.
4.13 Collection of cess and establishment of check gates: Every market
committee has the power to
levy and collect cess on the
agricultural produce brought
or sold in the market area at a
rate not exceeding 2 %. The
data reveals increase in cess
over the years. For prevention
or evasion of cess on
agricultural produce the
market committee has
established checkgates at
different points within the market area – Collection of cess
(21 A)
Fig 4.2
4.14 Goods coming from the rest of the country to Assam and other North Eastern
States by vehicles enter Assam through Boxirhat and Srirampur Check gates.
Goods going out of Assam also pass through these Check gates. Police, Tax,
transport, excise, forest, departments and Assam State Agricultural Marketing
Board operate separate check gates at these places. The market committee
operates its own check gate and levy a cess of 2% from the trucks carrying
agricultural produce to the market area for sale or delivery Besides these check
gates there are illegal check gates at districts also . The system of tax collection at
check gates by AAMB needs to have a relook when the agricultural marketing
is undergoing the change in present times.

The situation of Howly APMC market shown in Box that the market receives
income in the form of cess which is collected at the checkgates.
 Box 4.1
Agricultural Produce Marketing Committee Howly
The Howly primary yard was established in 1977. Its subyards are Sarbhog, Barpeta

Road, Kayakuchi, Simla and Langla which are 2 to 3 yrs old.

It has a 15 member elected-body headed by a Chairman. The Primary market yard has a

godown shed, staff quarters, toilet, auction hall, cycle and scooter stands. The market

has been occupied by CRPF, Rs 36 lakh is due from CRPF towards rent. APMC has

demanded Rs 23 lakhs but nothing has been received so far. The cess is collected at the

check gate only. There are various check gates through which the produce passes and

they have become cess collection gates. During the discussions, it emerged that market

secretary is only performing the role of collection of cess by visiting checkgates. The

checkgate of Howly is in Sarbhog. All over Assam there are around 20 checkgates.

Regulated Market Committee provides license to traders. The license fees of Rs 10 and

1% as cess is charged (cess is mentioned in the APMC Act itself and is synonymous to

fees). The Regulated Market Committee (RMC) gives license to all the traders whether

they are operating in Munipality, Town Committee or Panchayat Markets. The RMC

Howly has issued 600-700 licenses; of which maximum license holders are Farias (they

are mobile traders who aggregate the supplies and send them to bigger markets).

Around 50% of the income of APMC goes to State Agricultural Marketing Board. From

this, Board spends on developing APMC infrastructure. During natural calamities,

farmers are provided with seeds, pumps, etc.

By and large the function of APMC for which it was established has been completely

ignored in the regulated markets and their role has been limited to that of fees

collection.

4.15 Licensing of Market Functionaries Under Section 13(2) of the Assam

Agricultural Produce Market Act, 1972, licence is issued to the market
functionaries like Traders, Commission Agents, Brokers, Weighment,
Measurers, Surveyors, Warehousemen etc., for doing their business in a
market area, by the concerned Regulated Market Committee on payment
of such fees as prescribed. As per the discussion with AAMB 7000
licenses have been given to the traders all over the State.
4.16 Weighment and measurement: As per the Section 49.2 the board is empowers
to fix new weights of an agricultural produce to be filled in a packing unit bag, a
half tin, or a basket, a bale etc in each notified area. The act also provides for test
weighment in the presence of both the parties. Only those weighing
instruments used for prescribed weighs and measures which satisfy the Assam
weights and measures Act 1956 are to be kept in market yard. Each committee
has to keep in the market yard at least one weighing instrument of the capacity
of one quintal and two sets of weights.
4.17 On various visits to markets and interaction with market users it was
found that prevalence of local units as” gussi” “thok” are very common. The
weighing instrument kept one of the busiest market of Assam showed a faulty
weighing scale and incorrect weighment of the produce
4.18 Management of Services and facilities: The provision of services and
facilities and their management is closely related to the form of ownership of the
market. The market
authorities have the
responsibility of providing
and managing following
essential Services: Water
supply, electricity, garbage
collection and disposal,
repair and maintenance of
roads, drainage system,
structures and building.
Market Authorities also have to Fig 4.3 –Facilities
provide supportinginservices
Marketssuch as: sorting,
grading, weighment, market information, extension service and veterinary
facilities in livestock markets. It also requires improvement of existing facilities
and creation of new facilities which are need based. In the State of Assam
Marketing board has provided infrastructure and facilities. The survey of 58
markets under NAMA project which are under State Agricultural Marketing
Board and the number of facilities are shown in the diagram.( Fig 4.3) Under the
rural godown Scheme a capacity of 14500 MT have been created by constructing
22 rural godowns.Assam State Agricultural Marketing Board has
constructed three cold storages which are as follows:
S.No. Location Capacity Source of fund
1. Byrnihat 500 MT Spices Board & ASAMB
 2. Singimari 2000 MT NEC
3. Gossaigaon 2000 MT NEC & Assam Govt. / ASAMB

4.19 Development of Single Commodity Markets Board has established

Kharikhana jaggery market in Nagaon district, Gauripur Jute market in Dhubri
district and Darrangiri Banana Market in Goalpara . Being commodity specifiv
in nature, the Board has already provided market infrastructure in those
markets. Recently the Board has decided to develop the Darrangiri banana
market further by providing facilities such as banana storage cold rooms,
auction yards, internal roads, rest house, Weighbridge, drinking water and toilet
facilities etc. besides other functional infrastructue.
4.20 Formation & Registration of Growers’ Societies The Assam State
Agricultural Marketing Board has introduced a scheme for organizing the
farming community to involve them in the efficient marketing system so that
they can reap out the benefit of Regulated Market Scheme. 641 nos. of Growers’
Societies have been registered under ASAMB till date.
4.21 Management of finance: In lieu of the services the market authorities
recover fees from the market users. In addition to the fees the other sources of
incomes are license fee from traders and other functionaries.

CHAPTER V
Issues in parallel Market System
Agricultural marketing system and market in Assam lacks orientation for growth
for development. The observations are as follows:
1.1 Markets are left to lessees to manage who take over the operation of markets
as stipulated in the legislations I) Municipal Act 1936 II) Agricultural
Produce market regulation Act 1972 III) Panchayat Act 1994. These three
agencies they operate in isolation to each other. While the Assam State
Agricultural Marketing Board (ASAMB) has ploughed back some revenue in
market development but municipalities, town councils and panchayats have
 failed to do so all these years. Resultantly the primary markets, the backbone
of the State’s network have remained undeveloped. They are over congested,
unhygienic, devoid of need based facilitating infrastructure, supporting
services, innovations etc.

1.2 The bidding system under which the markets are leased out is in fact like a
cartel – who takes markets on lease everybody’s name year by year and turn
by turn. Once the bid is finalized Anchalik Parishad plays no role in the
development of the market. The bid money is shared by Anchalik Parishad,
Zilla parishad and Gram Panchayat in the proportion of the 40:40:20. The
revenue sharer is not accountable for development of the market.

1.3 The efforts of the State Government to set up orderly market network for
organised marketing through Agricultural Marketing Regulation Act, 1972
( implemented w.e.f 15.6.77) met with a limited success. The legislation could
not bring all markets in the State under its developmental umbrella to
undertake cohesive development. It proved to be another parallel legislation.
It could not uplift marketing system of the state and has focused on the
collection of cess at district check gates set up for the purpose. The enactment
of the act only facilitated receiving central government assistance for market
development under the centrally sponsored scheme for which the act was a
precondition.

1.4 The structure of market fees varies across the markets. The charges recovered
by lesse are not formalized and has freedom to charge any fees. In absence of
any regulation and checks the income of the money is not plowed back to the
system. The irrational collection of money and evasion of revenue of
Government has resulted in un developed markets and poor infrastructure.

1.5 There is a good amount of money collection in the weekly but in absence of
any receipt or issuance of wrong receipts the income of the market has been
underreported. Due to unsystematic and irrational charges which varies from
poultry bird, pig, fish to meat the estimation of the income is a difficult one

1.6 Majority of the markets have spill over and retailers sit outside the market,
ground rent is also recovered from the users sitting outside the market.

1.7 There is prevalence of weighment units such as pon in betel, gussi and dicha
in betle leaves, basta in case of rice, number in oranges and other local
measurements. The estimation is only approximation since these units need
to be converted in Kg and quintals
1.8 The markets are leased out for 3 to five years and the lease amount varies
from 3 lakh to 12 lakhs. There is collusion in grant of lease and during
discussion with market authorities it emerged that leasing remains in a
family year by year.

1.9 There need to have regulation of rents inculcation of good marketing

practices in the physical markets, the benefits of agricultural production and
the opportunities for better incomes will be difficult to be realized by
farmers.

1.10 The role of Assam State Marketing Board in bringing regulation,

streamlining market information, ensuring correct weighment and providing
need based infrastructure is important. The fact that emerges is that
minimum and basic infrastructure are missing in the markets.

1.11 While creating infrastructure need-based considerations are absent. The

locations of the market and designs have been found to have no functional
utility. A platform constructed in Jamira market was found incomplete in
terms of absence of roof and, the floor of the platform was un cemented,
which has decreased its utility. The overflow of trade on the road is visible in
such markets.

1.12 Markets are viewed as a source of revenue. The municipal markets have
large arrivals of agricultural produce and the revenue earned is used for
urban facilities. The periodic markets operated and managed by a contractor
or a lessee is run with the objective to earn profits.

1.13 Markets are full of garbage, muddy water logging, and, inhospitable to
producers and other market users.

1.14 The markets suffer from lack of enforcement of rules and regulations. The
market authorities have ignored market development and there is actually
nobody to check the operations in the market which has slowly become
exploitative and unfriendly to the farmers.
 Chapter VI
Bringing Reforms in Agricultural Marketing
6.1 Role of the State in Agricultural Marketing: The State marketing Board has a
legal stature to regulate the functioning of the market to provide a equal platform for
an effective system. Such a system has an importance of being there to set rules
under which markets operate. An effective Market system should provide an outlet
and incentive for increased production. With the increased production of food grains
and horticultural products in Assam , it would be necessary to provide a an effective
marketing system with the objective to increase rural income and ensure affordable
supplies of food stuff.
6.2 The reforms in the present system are required to remove restriction and
duplication in the process and to reduce uncertainty by providing needful
infrastructure. The reforms process to bring efficiency and participation will require:
- Promoting Private sector for investment and creation of values within the
supply chain
- Reducing the administrative controls on license and taxation at check gates
The process of reforms involves a process of redefining property rights,
responsibilities towards management including the relative roles of different
agencies within government as well as outside government.
6.3 Regulation and reforms are instrument to perform a enabling function. The law
in this context defines the ownership of the market and establishes rules to protect it.
The process of reforms also establishes a relationship of person to good as to who
can trade and what can be traded. The right to participate in a market is also
protected by law of the market. Regulating when the markets are held by ion of
allocate on of stalls, types of produce that can be sold, the location of selling space
for different commodities, collection of revenue and the maintenance of hygiene,
multiple payment and charges in the market.
6.3 Effectiveness of market is enhanced when contracts and other liability are
defined and provides a dispute re addressal System.
6.4 Agricultural markets in the State of Assam are multi commodity and multi
functional. Instances are common where particular markets performs wholesale
function for some commodity and semi wholesale or retail function for some other
commodity, at the same time. All functions being performed for a single commodity
is also not uncommon. The handling of multiple commodity and functions has lead
to severe operational difficulties. The encroachment upon already inadequate
infrastructure and facilities and spill over are a big hindrance in operation of the
markets. Under the circumstances business thinking would be to develop markets
commodity wise and function wise. A management approach to the new markets
which are coming up requires:
- segregation of the commodities
- segregation of function
6.5 Such measures would reduce volume of transactions, arrival, pressure of space,
services and facilities on a single day and promote business smoothly. The
overlapping of functions and responsibilities resulted in neglecting market
development by the concerned agencies. The market system as it is today is totally
inadequate and unprepared to take on increasing competition between domestic and
imported agricultural products, arising out of liberalization and globalization.
6.6 The Model Act adopted by State ushers a new leash into marketing environment.
Rules for contract farming, establishing private markets, spot exchanges will help in
bringing the desired changes. Agricultural markets and marketing system has to be
proactive to development and sensitive to emerging requirement In order to develop
markets to be competitive following steps for management are suggested for
bringing the change in marketing and inculcating good marketing practices.
6.7 Strengthening State Agricultural Marketing Board Assam State Agricultural
marketing board which is established to facilitate marketing in the State has not been
able to bring the desired changes in the marketing system of the State for three
reasons.
- Staff of AAMB is positioned at Check gates to extort fees from the traders
entering the state with agricultural products
- In RMC where infrastructure has been created trading is not taking place or has
not been shifted.
- RMC is also levying fee from traders who are operating in markets not owned by
RMC but by the condition that they are located in RMC market area.
In the wake of reforms Assam State Agricultural Marketing Board has to play a
proactive role and strengthened. AAMB requires to be oriented to take following
responsibilities:
6.7.1 Service Orientation: RMC which came into existence to provide service to
sellers and buyers is presently oriented to revenue generation. They have eluded
from being a facilitator. It was due to this that RMC are uncompetitive as compared
to the markets owned and operated by Municipality Board and PRI in Assam State.
The service orientation to the present RMC need to be brought by taking following
steps:
- Market committee needs to work with farmers by consolidating them in groups
and giving training them on market led extension
- Developing a market information of their own market at least and disseminating
them to the market users
- Introducing innovations in marketing such aggregation of product, using shared
transportation, linking farmers with agribusiness companies, organizing farmer
markets etc. This will be possible with a close bonding and networking with farmers
- Effective checking of marketing practices and imposing penalties in the market
to stop the malpractice in weighment, payment, unjustified charges. The provision of
imposing penalties is there in the APMR Act but they have not been executed and
for this single reason the markets across the State are thriving on unjustified and
exploitative practices.
- Increasing the Staff and manpower and positioning them at market Yards to take
the responsibility of making it a competitive place for buyers and sellers

6.8 Introducing measures to increase efficiency of the market under Local bodies
The markets under municipal bodies which are daily markets attract buyer and
sellers and has income which is higher than other markets. Similarly the periodic
and primary markets are also important trading place for agri produce. In spite of
the thriving malpractices and unchecked overcharges by lesse of the market trading
takes place without inhibitions. The Model Act fosters the idea of liberalizing the
marketing environment by enhancing the private roles, the markets under ULB and
PRI are here to stay.
6.8.1 The responsibility to eradicate malpractices and inculcate good marketing
practices lies with State. The Assam Panchyat Act, 1994 only stipulates the approved
list of collection that a lesse is supposed to charge from market users (Rs 10-15 on a
market day) but has no provision of imposing penalty in cases where the charges are
higher than approved.
While the ownership can remain unchanged, concrete steps to free these markets
from exploitative practices need to be taken. While awarding a contract to lesses to
operate in the market , the terms and conditions should be particular about the
responsibilities of the contractor to be a facilitator and indulgence in exploitative
practice should evoke a penalty. In present system the lesse has free hand in
escalating the charges and this remains unchecked. The staff of Zila Parishad need to
be trained and empowered to play a facilitating roles and Institutions like SIRD,
SAMB can be geared up to provide market led extension training. A regular
consultation, facilitation and hand holding between different institutions will
gradually bring a conducive marketing environment in the state.
 6.9 Management and segregation of function: Under the Municipality Act the
markets are operated for retailing function but it has been seen that these markets
have overlapping functions of wholesaling and retailing of agricultural products.
6.9.1 A legal intervention is required to segregate the market functions in
Municipality and Town committee markets. Wholesaling of agricultural products
should be disallowed in market and if AAMB is ready to take the responsibility, the
wholesale activity should be transferred to them for regulation. This will bring the
clarity of market functions and responsibilities amongst the parallel Institutions
running markets in States.
6.10 Strengthening Traders association for operating the markets: With the
liberalization of economy there is increased focus on market, business and profit.
The market trends are well understood and known to traders. The association of
agricultural traders have the potential to both facilitate the work of their members
and to achieve greater efficiency in the marketing chain. It is time to recognize their
role in improving the infrastructural and regulatory framework under which trading
takes place in markets It is necessary to involve traders and their association in
operating and managing the market. Owing to their strong influence and traditional
linkage with producers, fellow traders, buyers in these destination markets and
service providers, It is with this view it is possible for them to operate and manage
markets efficiently taking all segments with them. There is a need to try innovations
in uplifting the marketing system by giving association of market traders to operate
and manage markets within the framework of law.
6.11 To begin with, this could be a joint responsibility of public and private sector in
order to generate adequate financial resources and competition. The agricultural
marketing reforms adopted by the State Government have paved a way for
professional management, direct marketing, contract farming etc. These instruments
of reforms should provide leverage to usher in new way to develop network of well
equipped and efficient markets in the State. Having approved in principle, further
modalities- legal administrative, financial could be worked out for
6.12 It would require preparation of mandatory set of rules and regulations in
consultation with trade for operation and management with well stipulated duties
and responsibilities for the operation. Qualifying criteria for the association to run
the market would also have to decided. Revenue sharing arrangements between
association and government is will have to be worked out. If required a, constitution
of traders association as business companies may have to be looked into.
6.13 Strengthening Farmer Groups for engaging in marketing: Many poor people find
it difficult to engage successfully in markets. The barriers poor people face in
markets include lack of financial and physical assets, lack of access to key
information and services, lack of negotiating power and competitiveness due to the
production of very small volumes of low-quality products, and a lack of self-
Confidence . The formation of farmer groups at village level needs to be taken
as a priority by enhancing their capacity in market engagement. The
collective group can increased the access of small and marginal farmers. The
key to this approach for strengthening capacity of small farmers for market
engagement vis the combination of skill sets such as Group organization and
management, Internal saving and lending; Experimentation and innovation
(knowing how to access and apply new technology) and Basic market skills. Basic
market skills prepare farmers in small groups to produce effectively for the market
by organizing their production (for example, the crop variety, the planting dates, the
area to plant, etc.) to satisfy market demand .These skills also help farmers to
organize harvest and post-harvest management to collectively present their products
with the quality, amounts and timing requested by the buyers. As a result, farmers
can improve their sale price, and their cash income. Acquiring basic bargaining
skills helps marginal farmers to improve their market power, challenge barriers to
selling their products and realize higher profits.
Field Management Committees (FMCs), SHG and general farmers and their linkages
can be particularly helpful for marketing of particular type of commodities. The
formation of Farmer Interest group (FIG) will particularly help to reduce the
transportation costs of the farmers and thereby enhance profitability of the farmers.
The growers society formed by AAMB can be strengthened by imparting right kind
of skills to be able to manage a market.
 CHAPTER VII
Promoting Vibrant and Competitive Agricultural Marketing

The development of agricultural system in Assam has focused on increasing

productivity by providing high yielding varieties, increasing fertilizer consumption,
promoting diversification and farm mechanization. The agricultural productivity is all
set to improve but on the other hand development of markets and marketing system has
been ignored. The study of various markets have shown there is much to be done in
marketing to gear up to handle increased production and increase in demand in
Assam.

The promotion of marketing requires a systematic approach with the singular objective
of fostering competitive agricultural marketing system. The real challenges
a

To bring parity of management in markets operating under various authorities

and parallel acts
To develop and upgrade market infrastructure to be able to handle the produce
which is envisaged to increase progressively in 2015
To inculcate good marketing practices to reduce losses and bring efficiency in
the markets
To upgrade skills and capacities of market authorities and stakeholders in the
supply chain. This requires imparting marketing extension and training to the
stakeholders
To bring innovation and new ideas in marketing at grassroot level

The idea is not to have a parallel competitive system to the existing one, but to develop a
professional and a modern system around it. The proposed action plan suggests and
covers the key area e.g Market regulation, market infrastructure, marketing extension,
agribusiness and entrepreneurship in Assam.

7.1 Effective market regulation.

Issue: There are three parallel Acts e.g Assam Agricultural produce Market Act 1972,
Municipalities Act 1956 and Panchayat Raj Act. The multiplicity of acts has been the
biggest obstacle in bringing regulation and streamlining the marketing system.

Recommendation: The present marketing system needs to be revamped by improving

the legislation framework and organizing the markets by developing functional
linkages. The large number of periodic markets and wholesale markets which are
operated and managed by different agencies needs to have a common system of
management to be looked after by the respective agencies. The concrete efforts in this
direction would be to identify the markets which require up gradation and
improvement to be handed over to the State marketing board and this can be mutually
be decided by ASAMB and PRI.

Action:

Rural haats which are of the nature of assembly market can be handed over to
marketing board for management and to facilitate marketing. This arrangement
would enable the govt to develop market infrastructure in the weekly markets
under Central Government Schemes available to the states who have adopted
reforms.

In municipal markets the wholesaling activity should be segregated from

retailing activity. The wholesaling activity should be brought under APMR Act
in orde to bring fair practice and have competition.
Institutional reform within mandi premises to streamline collection of multiple
charges, proper documentation and record keeping and making management
more responsible and development oriented.
Expediting rules to encourage contract farming, direct marketing and other
alternative marketing arrangements.

Developing the marketing system in such a way that competition is created in

smaller markets by developing proper channels, adequate number of buyers to
create competitive market so that small farmers can participate in the markets

The present system of awarding contract to lesse through closed tender needs to
be replaced by having open tender system with wide publicity to have better
participation

7.2 Improving market infrastructure and adequate facilities:

Issue: A large share of agricultural produce is envisaged to continue to flow

along traditional channels in years to come. The poor market infrastructure and
facilities in the markets of the State calls for addressing the problem by planning
 the designs of the market and utilizing the revenue earned by the markets for
developing need based infrastructure.

Recommendation: The NHM guidelines provide the list of the minimum

facilities need to be created in wholesale markets. (Annexure). The markets need
to be upgraded and minimum and basic facilities need to be provided.
The planning parameter should consider the production and demand growth,
expected throughput, changing local needs and urbanization. The new marketing
arrangements and alternative marketing arrangements calls for developing wide
ranging market. The market options would be:

A. To develop primary markets as collection centre: To develop the primary

markets as collection centres of the wholesale market, the markets need to be
upgraded in terms of physical infrastructure. The markets need to have basic
facilities like platform, paved ground, internal road and parking to handle the
arrival and at the same time should have linkages with the market where to the
dispatches have to be sent. The suggestion is based on the study on periodicity
and the markets which act as break of bulk points within the market circuits have
the potential to to be the connecting points to large wholesale markets. The
markets as shown below are suggested for upgrading them as collection centres:

Table 7.1 Developing primary markets as collection centre

Market Products Periodicity District

Bagribari Jute, cereals, Sunday, Dhubri

(Salbari) Oilseeds, pulses, Thursday
spices
Salkocha Jute,cereals, fruits, Wednesday, Dhubri
vegetables, betelnut Sunday

Dharapur Rice, vegetables, Daily Kamrup

fishes etc.
Patharighat Paddy, pulses, Thursday Darrang
oilseeds, betelnut,
fruits
 Bedeti Paddy, rice, Tuesday Lakhimpur
vegetables,fruits,
pulses, oilseeds,
livestock
Dolohat Paddy, rice, Sunday Lakhimpur
vegetables,fruits,
pulses, oilseeds,
livestock

B Developing Wholesale markets

located on the borders

Primary markets which are on the

border of the neighboring State and
has good cross border trade with
neighbouring States need to be
developed as wholesale markets.
Presently the markets are arranged
as a in a circuits. These markets can
have functional arrangement in a
hub and spoke model Hub-and-
Spoke Format wherein the central
Market (the hub) would be linked to
a number of Collection Centers (CC)
(the spokes).The spokes would be
conveniently located at key
production centers to allow easy
farmer access and the catchment
area of each spoke would be based
on meeting the convenient needs of
farmers. For example the Algapur
Fig 7.1 – Example of Setting Markets
market can be developed as
Collection centre by developing linkages with the neighborhood (Fig 7.1). The markets
arranged in Hub and spoke model would establish backward linkages with farmers
through the collection centres and forward linkages through wholesalers, distribution
centers, retail stores, processing units and exporters. In present system the rural haats
which are de linked from the central market continue to be excluded from the
development. In order to have a inclusive growth of the markets, they should perform
the function of the collection centre and be linked with a market which will aggregate
the supplies from the spokes and channelize them to the main market. For this support
of logistic and transportation will have to provided by Hub market. Irrespective of the
multiple ownership the model of hub spoke and network will work on the basis of
market requirement
Based on analysis pattern of arrival and dispatch following markets can be developed as
wholesale market by developing physical infrastructure, facilitating trade, developing
market channels and linkages to retail markets.. Since they cater to the border States,
these markets can be developed as wholesale markets with collection centres at the
backend and forward linkages with wholesale markets or retail markets.

Table 7.2: Developing markets located on the border of the States

District Market Place of Despatch %o Distance

Despatch in Kms
Hailakandi Algapur Karimganj 20 32
Silchar 20 30
Kalain 15 20
Meghalaya 8 120
0 0
Cachar Gumra Silchar 20 50
Karimgang 20 50
Meghalaya 20 100
Tripura 20 350
Localy 20 0
Cachar Natun Bazar Silchar 35 30
Hailakandi 25 30
Mizoram 25 250
Sonitpur Lokhra Dhekiajuli 50 70
Nagaon 20 100
arunachal(Bomdila, 30 150
Rupa, Sappa)
Bongaingaon Lengtichinga Barpeta road 40 75
Bongaingaon 30 0
Barpeta road 25 75
Dhekiajuli 50 70
Nagaon 20 100
 Arunachal (Bomdila, 30 150
Rupa, Seppa)
Goalpara Balijana Krishnai 10 20
Goalpara 10 11
Bongaingaon 10 50
Dhubri 10 90
Meghalaya 10 35
Darranggiri Guwahati 20 110
Goalpara Bongaigoan 20 0
Bihar 10 0
Bengal 10 0
Jarkhand 10 0
Goalpara 15 0
Goalpara Rangsai Dhubri 15 110
Guwahati 20 142
Bihar 5 0
Kukrajar 20 70
Bilasipara 15 100
Dhemaji Dekapam Pasighat 30 70
Gogamukh 30 70
Silapather 40 30
Sonabarighat Tezpur 35 65
Mizoram 25 125
Haflong 15 55
Tinisukia 25 -

C Developing terminal markets for managing the outflow and inflow of

commodities: Developing specialized markets for commodities like jute, banana, rice,
pumpkin, pineapple. Markets like Darrangiri which have large arrival of banana,Manja
in Karbianglong for Ginger should be focused to bring a good marketing infrastructure
and a system.

D Developing markets as agrimarts: The markets on the rural and urban fringe
should be given requisite technical support so that they can be used for effective credit
delivery, input marketing, procurement, information kiosk. Under the changed
economic environment, the rural markets can be a financially self supporting unit and a
source of income to finance further developmental infrastructure
Action: Since Assam State has adopted Model Act the market facities, infrastructure
and development of markets should be developed under Central Sector Schemes and
financial assistance from and other developmental organization. A careful locational and
neighborhood analysis of markets should be the prime consideration while developing
markets and infrastructure.
7.3 Rational utilization of market revenue: As discussed the revenue earned from the
markets of Assam State is often siphoned for other purposes and market development
has been ignored. The markets develop significant revenue from marketing fees, ground
fess, parking fees and rentals. The Market fees is collected in lieu of service rather than
being taken as a tax. The revenue gained from transactions is to be utilized in
developing facilities in markets.
Recommendation: The large evasion of revenue require effective system to check the
income from the markets and to ensure that revenue is uitlized for developing basic
facilities in market such as shops, parking, drainage , sheds, troughs for cattle, drinking
water, public toilet. The system of audit of accounts of the markets and having
transparency will help in planning rational allocation of revenue and resources.
Action:
1. The practice of collecting market fees at the check gates needs to be abolished
2. The multiple charges and irrational fees charged by the lessee needs to be
checked and monitored
3. The wholesale markets of Assam need to be brought under the regulation so that
market fees collected can be budgeted and plowed to develop facilities.

4. Replace the bewildering varieties of weights and measures in use in markets by

standards based on the metric system. The Standard of weights and measure act
of 1976 provides the guidelines to States for its effective implementation

5. Introducing electronic weightment in the markets to bring transparency of

transaction
6. Markets which are operating under panchayat and municipality should have a
business plan which clearly identifies the role the market is to play and how it
will do this for the benefit of the users.
7. Annual budget and annual work plan should be developed for each market. To
check the optimum flow of income and utilization of the same monitoring of
physical performance should be in place. This only requires making market
committees to adopt this system and become accountable by following a well
documented system

7.4 Strengthening domestic grades and standards: The study finds that there is
absence of grading and standards in markets. The grading in these markets is done by
traders is on the basis of size and color of fruits and vegetables. Even in the regulated
markets of State, grading practice is conspicuous by its absence.
Grading after harvest effects the price realization by farmers and facilitates trade.
Grading as a voluntary measure needs to be encouraged and made mandatory in
commodities which have potential for export market viz pineapple, orange and
vegetables.
Recommendation: Grading after harvest effects the price realization by farmers and
facilitates trade. Grading as a voluntary measure needs to be encouraged and made
mandatory in commodities which have potential for export market viz pineapple,
orange and vegetables.
Action
1) The adoption of grading and standards for food safety needs to be inculcated by
provision for training, extension and information.
2) This also calls for having trained manpower for assessing risk and managing food
safety protocols.
3) Besides this well equipped laboratories for testing and certification will be required to
be set up in collaborations which can be done in a PPP mode

7.5 Improving access to credit: Access to credit is one of the biggest hindrance faced by
the farmers. Banks and other institutions are hardly providing credit for harvesting,
procurement packaging, transportation, storage etc. In the present system the credit
needs of the framers are fulfilled by the informal sources.

Recommendation: Improving the credit system both formal and informal is also
required so that farmers can be saved from unauthorized moneylenders who charge
high rate of interest and are exploitative in nature. During the interaction with various
Women groups in the remote tribal area, it has been found that Women SHG have fared
well in terms of management, operation and effective utilization.
Action
1) Lending by rural and co-operative banks have to increase its area of reach by giving
them better framework for functioning
2) Institutional efforts needs to directed in making attractive schemes for availability
of finance and various other assistances including technical know how, training,
sales, purchases, etc.
3) Promoting micro finance in rural areas for credit requirements. The Micro
finance Institutions should facilitate of financial and non-financial services such as
loan funds, grant support, equity and institution building support so as to facilitate
development of enterprises in rural into financially sustainable entities .
4) Formation of SHG for flow of small credit has been witnessed in Assam. Women
SHG are functioning well but they need to be strengthened by increasing credit flow
training in management and entrepreneurship
 5) The warehouse receipts should be made a prime tool for trade and facilitating
finance against warehouse receipts. The negotiable warehouse system will increase
liquidity in rural areas and encourage scientific warehousing of goods. The role of
APMC in encouraging the use of negotiable warehouse receipt is of important one.

7.6 Strengthening rural road connectivity: The condition of rural roads in Assam is
poor and has posed a major challenge for the transportation of products. Poor road
connectivity is also one of the contributory factor in low realization of value. As a
consequence of the poor road condition, transportation costs are higher, loading and
unloading creates difficulties and results in produce losses. Because of poor rural road
network, produce marketing tends to shift near major highways, thereby leading to
suboptimal market pattern
Recommendation: Public investment in rural roads by increasing rural connectivity can
have a significant impact on access to market by farmers, the development of supply
chains and overall marketing efficiency in addition to other beneficial impacts on rural
households. The World Bank study shows that improving the road conditions will
induce farmers to sell more in the market instead of farmgate.3
Action: 1) Panchayat Raj bodies at district block and village level can play a pivotal role
in construction and management of rural roads.
2) Substantial investment needs to be made in development of rural road network. As in
States like Madhya Pradesh, Rajasthan, the construction of rural roads is done by State
Marketing Board, for this the kind of System in Assam more and more market needs to
be brought under regulation and taken over by Assam State marketing Board.
7.7 Developing effective farmer linkage to supply chain: The market system in state
has fragmented and un coordinated supply chain for marketing of produce. In addition
to this, farmers lack in marketing skills, receiving market information, formation of
group. Producers are seen selling small volume of produce in markets of Assam, which
is due to absence of aggregation at assembly market or at collection centre.

Recommendation: Developing marketing skills of the farmers and forming groups to

consolidate the produce, motivating them for diversification, achieving higher
production and getting better price is a prime requirement. This requires developing
market led extension plans and training to the farmer groups by developing linkages
with Government of India Institutions for training and extension will be helpful.

Action: 1) Developing marketing system and channels for effective delivery system for
which the market committee of rural and wholesale market should play a proactive role

3
India taking Agriculture to the markets, 2006 , Document of World Bank PP 23
in developing proper channels, adequate number of buyers to create competitive market
so that small farmers can participate in the markets

2) Removing asymmetry in information and building linkages with companies for

contract agreements and upcoming retail chains, setting direct marketing linkage will be
helpful in making farmers participate in emerging trends

Action:1) Collaborating with NGO at taluka level to impart market led extension and
training to the farmers to form groups

2) Making producer’s organization for selling organic products in Assam. As the market
for organic product is growing it is important to have certification companies and
organization to leverage the advantage.

3) Initially the exercise of building linkage of farmers with retail chains/processors

should be initiated in commodities like Potato, Ginger, Betelnut ,Pineapple, Orange as
they have found to have good prospects. They can be replicated on other commodities

7.8 Dissemination of market Information: Majority of the farmers in State depend on

the traders to have information of the price of the day. While traders enjoy better
communication farmers see their information links week. Due to limited source of
market information, farmers are unable to negotiate and make any market plans.

Recommendation: Agmarknet contributes in improving access to real time price

information for market users. It needs to be extended to all markets so that it can be used
by wider clientele by reporting for as many commodities as possible. The new ways of
integrating database with other system of low cost dissemination through SMS by
mobiles, rural information kiosk will be necessary. The use of toll free number and
facilities at Kisan call centers needs to be improved by having trained manpower and
resources to answer the queries of the farmers are of urgent attention. The other low cost
method of dissemination of market information is through Electronic display boards in
market which are easy to updated and have a better visibility.

Action:

1) Ensuring the daily uploading of market information on Agmarknet.

2) Installing Electronic Display Board in major markets with ticker on market

information

3) Giving value added information like cost of transportation, list of prospective

buyers, announcing a new scheme, introducing online training packages on the portal
will bring improvement in the system. State Marketing Board of Karnataka has its own
MIS system through ‘ Krishi Maratha Vahini’.

4) The successful interventions by private companies in other states can be replicated to

develop financial inclusion, market information and providing value added services on
e governance. This calls for public private partnership in developing effective
information system with an ease to access.

7.9 Promoting Direct marketing and empowering Women:

In the existing practices the weekly rural markets (the focal points of rural business) are
run by dominant groups (traditionally male) in the society, who are legitimized to
collect revenue against each vendor in contractual basis through community acceptances
or through Government formalities. The vendors set by the outsiders are inlets of
essential commodities to the villages as well as outlets of village produces to the outside
world. The rural women who are the main producer of rural produces have to depend
on the middlemen for selling of their produces and thus have to remain in the low paid
end of the market.

Recommendation: To eliminate this traditional barrier and policy gap the movement of
Amar Bazar (Our market) has been initiated by Rural Volunteer Centre, Akajan in the
year 2003. The formation of SHG and empowering women by enhancing their role in
marketing will help in promoting vibrant marketing in Assam During the study, many
SHG were found working efficiently in Damoria, Narayanpur,Akajan.

Action: Consolidating the Women SHG and strengthening them with proper training in
accounts and management.

7.10 Encouraging Agribusiness ventures:

Recommendation: The strategy of the agribusiness development should be based on

ensuring raw material availability, regular power supply, cool chain to mange
perishables products, availability of quality and planting material, de3veloping
backward and forward linkages. The state needs to expedite the establishment of post
harvest infrastructures along with authentic quality check laboratories to unleash the
opportunities in Agribusiness ventures. Public Private Partnership PPP can play an
active role for setting up the quality laboratories. Agribusiness opportunities requires
availability of raw material, availability of finance, products to have quality
certification, finding and being competitive in price and quality.
 An efficient value chain linking production with processing will greatly help in
reducing food cost, removing uncertainties in supplies and improving diets of the poor
and non poor in urban and rural areas. This kind of dynamism will provide opportunity
to the farmers and other entrepreneurs to contribute to generating to employment and
raising income.

Action:

1) Ensuring availability of raw material

2) Developing cold stores and refer transport system to ensure longer period of
availability and access to market

3) Having mechanized system for cleaning grading, sorting, packing of produce to

ensure quality produce

4) Availability of finance and making documentation easy for registration

a. Unleashing knowledge and innovations:

Innovation is the creation of better or more

effective products, processes, technologies, or ideas that are accepted by markets,
governments, and society. As the public policy in agricultural marketing is evolving and
opening up the sector for new partnership it is an opportunity to innovate new market
structures, delivery system, group formation, new supply chains and developing market
for organic produce. The present study explored that as a pat culture and society there is
a strong community bonding. Traditionally the societies have inherent nature of shared
resources and shared responsibilities especially in tribal communities. The social milieu
of the state encourages group marketing, women SHG and have readiness to innovate
and experience. The study shows few examples of innovations:

1) Initiatives of District Administration in linking tribal farmers with market- Case

of GINFED, Karbianglong

2) Contract farming in Nagaon District

12 Organic Agriculture and market Development in Assam: Assam is naturally

organic by default can be gauged from the extremely low consumption of
fertilizer in the region. While the Indian average is currently around 106 kg of
chemical fertilizer, Assam has been using 56 kg of chemical fertilizer per hectare
on an average. Again, the state uses 40.46 grams of chemical pesticides per
hectare against the all-India average of 0.448 kg. Farmers in these areas often use
organic manure as a source of nutrients that are readily available either in their
own farm or in their locality.
With the sizable acreage under naturally organic/default organic cultivation,
Assam has tremendous potential to grow crops organically and emerge as a main
supplier of organic products in the world’s organic market with the help of the
central government. Two companies, to promote organic cultivation in Assam’s
hilly Karbi Anglong district have been launched recently. The main aim of the
companies is to help tribal people belonging to the Karbi tribe realize better
returns from their land. This initiative is designed to promote organic cultivation
of turmeric, ginger and chilli in the district on a large-scale and also to promote
processing and export. In Karbianglong, Coinonya Farms Producers Company
Limited for turmeric and Karbi Farms Producer Company Limited for ginger
and chilli-- have also been set up as producers' companies under the new
provision in the Companies Act that give primary producers' the flexibility to
organize themselves as a normal company but on the basis of a one man-one
vote principle, which is the essence of a cooperative institution. Producers'
Company combines the economic advantage of a corporate entity with the social
benefits of a cooperative and the provision of it was introduced into the 2003
amendment of the 1956 Companies Act.
The State Agricultural Department initiated a pilot scheme jointly with
the Government of India in 2004 for organic farming in the districts of Udalguri,
Sonitpur and North Lakhimpur covering an area of 91 hectares and involving
154 farmers. This scheme led to the production of 133 MT of Joha rice in the year
2007 and last year it produced 60 MT of this aromatic variety of rice. The Geneva-
based SGS India certified the products of the scheme and with the help of the
Haryana based Sunstar Overseas Limited export process of this aromatic rice to
Germany, Switzerland and the UK has started.
The State Agriculture Department has now initiated a move to cover an
area of around 5,000 hectares under planned organic farming for certification
under the National Project on Organic Farming. About 50 per cent of the baseline
survey undertaken for the purpose is now complete. (Annexure)

The move intends to cover around 15,000 farmers in the districts of Lakhimpur,
Baksa (Tamulpur), Kokrajhar, Bongaigaon, Udalguri, Nagaon, Kamrup and
Goalpara (Dudhnoi). The Central Government has already released an amount of
Rs 15 lakh as initial an installment for execution of the programme.
Recommendation:

Forming Producers Organisation and companies

Building awareness about the standards of cultivation required for organic
farming
Imparting knowledge through about certification standards and certification
procedure
Suitable interventions for developing infrastructure would be necessary for
commercial bio-fertilizer, bio-pesticide units, agro forestry, vermi compost, post
harvest infrastructure with quality testing facilities.
Encouraging contract farming, crop diversification and mixed farming,
comprehensive operations plan for the farm and maintenance of farm records,
Establishment of local certification agencies, creation of common facilities for
quality control, etc.
Collaborating with International agencies for accreditation and certification.
Having experience in domestic market, this requires linkages with companies.
Sresta Bio is already sourcing ginger, turmeric to produce value added products
which are exported to EU
Building capacity to build an organic value added market chain for pineapple,
turmeric, Orange and to formulate their own projects
Initiatives by Non Government organization in Assam to help producers in
certification, training and linking them to domestic market.

The growth factors such as increased arrivals, rising population, increase

in awareness and literacy, rising income and consumer demand influence the
pattern of growth. The markets evolve from periodic markets to daily markets,
from primary markets to secondary markets from wholesale to terminal markets.
This growth trend also demands concerns about food safety and quality, agro-
processing and value addition and improved infrastructure and facilities,
improved information dissemination, improved finance and credit facilities
reduced logistics and better supply chains for higher value realization. These
growth trends will be the key drivers of growth in Assam.

_________________________
 Annexure-I

ASSAM AGRICULTURE AT A GLANCE

Total Geographical Area 78,438 Km. (78.44 lakh hectares)
Total Area under Forest 19.30 lakh hectares (24.60 p.c. of Geographical Area)
Gross Cropped Area 36.37 lakh hectares
(excluding area under Tea)
Net Cropped Area 23.86 lakh hectares (30.42 p.c. of Geographical Area)
Area under Horticultural Crop 5.46 lakh hectares (52.43 p.c. of Gross Cropped Area)
Tea cultivation Area 3.15 lakh hectares (4.02 p.c. of Geographical Area)
Area sown more than more 12.51 lakh hectares (49.16 p.c. of Net Cropped Area)
Cultivable Wasteland 80,000 hectares
Pest Endemic Area 2.23 lakh hectares
Chronically flood prone area 4.75 lakh hectares (19.91 p.c. of Cropped Area)
Chronically drought prone area 0.94 lakh hectares (3.94 p.c. of Net Cropped Area)
P.C. of Area under irrigation in Net – 17.47 p.c. (14.61 p.c. by Agriculture Department)
Assam Gross – 28.67 p.c.
Cropping intensity 152.43 p.c.
Agro-climatic zones 6 nos.
North bank Plains zone : Lakhimpur, Dhemaji, Sonitpur,
Darrang
Upper Brahmaputra Valley Zone : Jorhat, Golaghat,
Sivasagar, Dibrugarh, Tinsukia
Centrally Brahmaputra Velley zone : Nagaon, Morigaon
Lower Brahmaputra Valley Zone : Kokrajhar, Bongaigaon, Barpeta, Goalpara, Dhubri,
Kamrup, Nalbari
Barak Valley Zone : Cachar, Karimganj, Hailakandi
Hills Zone : Karbi Anglong, North Cachar Hills

Average size of operational holding 1.27 ha

Normal average rainfall Summer – 648.9 mm
Winter – 66.2 mm
Total population as per 2001 Census 2,66,38,407
No. of agricultural labourers 8.45 lakh
(as per 1991 census)
P.C. of Small Farmers 26 p.c.
P.C. of Marginal Farmers 36 p.c.
No. of Field Management Committees 25,768
(as on 01.01.2003)
Contribution of Agriculture to Gross State Domestic Product : 32.30 p.c.
Net State Domestic Product : 35.1 p.c.
No. of Seed Farms of Agriculture 41
Department
No. of Seed Villages 383
No. of Agri. Farming Corporations 11 nos. (1 no. each in Lakhimpur, Sivasagar,
Dhubri, Morigaon, Nagaon, Golaghat,
Dibrugarh, Kokrajhar, Goalpar district and 2 nos.
in Sonitpur district)
No. of Regulated Markets 24
No. of Kisan Credit Cards issued (as on 31 st 90,180
March, 2008)
Credit deposit ration 33 p.c. (India – 53.1 p.c.)
No. of Soil Testing Laboratories Static – 8 nos. Mobile – 4 nos.
No. of Quality Control Laboratory 1 no. (at Ulubari, Guwahati)
No. of Regulated Markets in the State 22 nos.
 Annexure II
Infrastructure Needed in an Ideal Market
Core Facilities Support Infrastructure
Platforms for Automatic weighing Water Supply
Auction Platforms Power
Packaging & Labeling Equipments Veterinary Services
Drying Yards Sanitary Facilities
Loading, Unloading & Dispatch Posts & Telephones
facilities Banking
Grading facilities Input supply und Necessity Outlets
Standardisation facilities POL
Price Display Mechanism Repair / Maintenance Service
Information Centres Office
Storage / Cold Rooms Computerized systems
Ripening Chambers Rain Proofing
Public Address System
Extension and Training to Fanners
Service Infrastructure Maintenance Infrastructure·
Rest Rooms Cleaning and Sanitation
Parking Garbage Collection & Disposal
Sheds for Animals Waste Utilisation
Market Education Vermi Composting
Soil Testing Facilities Bio-gas Production / Power
Drainage
Source: GOI (2007). “Report of the Working Group on Agricultural Marketing Infrastructure and
Policies Required for Internal and External Trade”, for the 11th Five Year Plan 2007-12,
Agriculture Division, Planning Commission, Govt. of India, pp-114
 Annexure III

A case study of linking tribal farmers with market

Integration of Supply Chain in Karbianglong - Assam
Karbianglong is a hill zone, situated in Central part of Assam having different climates
in different parts. It is bounded by Golaghat district in the east, Meghalaya and
Morigaon district in the west, Nagaon and Golaghat district in the north, N.C. Hills
district and Nagaland in the south.
The population of the district is predominantly tribal. Besides, a large number of non-
tribals also live together in this hill region. Karabianglong is predominantly an
agriculture dominated district with a unique climate which supports production of
orange, medicinal plants, mustard etc. It is a leading producer of fine quality of organic
ginger.
Ginger grown in Karbi Anglong are of Nadia, Rio-de-Janerio, Aizol and most of them
are low fibre type. Varieties having high dry rhizome with less fibre and high recovery
of oleoresin oil are preferred.
There was high incidence of post harvest losses of ginger due to lack of transportation
and storage facilities. The small and marginal farmers did not have economies of scale to
opt for proper grading, sorting, packaging and transportation etc. The producers had to
often resort to distress sale due to lack of market channel, market support and market
information. In-spite of high quality of the produce and high demand for the product in
industry the price that the farmer was receiving was not commensurate with the quality.
The share of farmer was a negligible fraction of consumer rupee.
District Collector of Karbianglong introduced innovating marketing in 2007 by
organizing the growers as federation and facilitating the producers to gain better
advantage. Karbianglong produces 12,000 metric tones of ginger per annum which is
valued at about Rs 10 crores. Ginger growers of the co-operative Marketing Federation
limited (GINFED), started in 2007 under Rashtriya Sama Vikash Yojana (RSVY) have an
association of 3,500 small and marginal tribal ginger growers. It aims to bring all the
ginger growers under one umbrella and give better returns to the producers.
Transportation of Ginger is a major bottleneck due to hilly and remote locations. It used
to be transported by road from Diphu to Guwahati and from Guwahati to Delhi which
escalated transportation costs. The transportation cost of Ginger by road from Diphu to
Azadpur mandi in Delhi is between Rs 3 to Rs 5 per Kg.
GINFED has now an agreement between North East frontier railways and Karbianglong
district administration. The Lumding railway division of NF Railway will attach a
wagon to an express train to transport ginger from different locations. The transport cost
will be between 20 Paisa to 30 paisa per kg when sent by train. With this agreement the
transport cost of supplying Ginger to Delhi gets reduced by 90%.
Storage and Post Harvest Handling: Apart from transportation, GINFED will also
provide post harvest handling facilities with storehouse, packaging, cleaning and
grading. With Storage facilities in place, the producers will be able to store the produce
and take marketing decisions. The post harvest facilities such as cleaning, grading and
packaging will help producers in supplying ginger to international markets. The
GINFED is also registered with SGS Sweden for getting organic certification with the
help of NABARD.
Besides this, the Federation has also fixed a uniform price of Rs 8 per kg for procuring
Ginger. This has brought relief to produces who initially suffered from lack of marketing
avenues, realization of proper price and distress sale. Before the GINFED intervention,
the price at which farmers used to sell, was between Rs 4-5 per kg. The assured price
support as assured by Ginfed has led to price discovery.
Financial Support:
Ginger farmers are provided with a special credit –cum- debit card to avail of bank
loans. The Ginger card (G card) holder can obtain loan of Rs 10,000 for crop production
from State Bank of India. The system is being seen as a major boost to the marginal tribal
farmers of the hill district.
Forward Linkages
The solution to logistic bottleneck and access to value added services will now help to
supply good quality ginger to ITC Ltd, Rayfam, New Delhi, Sresta Bio Products,
Hyderabad, NERAMAC and NAFED. These buying agencies will now make efforts for
further integration of the supply chain and cost reduction in the procurement process in
bringing about both market and pricing efficiencies in the market channel. GINFED and
ginger of Karbianglong has enough potential to process ginger for oleoresin which has a
high demand in international market.
The integration of logistic and business services will help in delivering benefits to all the
players of a supply chain.
 Annexure IV

Contract Farming of Potato in Naogaon Dist. of Assam

A successful case study of Backward and Forward Linkage of Agriculture
Produce through Contract Farming

Contract farming is done by Bengena Ati Surovi Gram Vikash Samity (a

Society). The society has 120 Self Help groups which has membership of 450
farmers from 10 villages. The society has buy back agreement in with M/s
Kishlay Snack Product. The society has also taken loan from Banks under SGSY
scheme as working capital. The main points that emerge out of the discussion are
as follows:

Challenges and Opportunities in Assam as discussed with buyers and sellers

 An entrepreneur feels that instead of direct relation with farmer they

should work with NGO to develop big net work of farmer for contract
farming. As per the discussion the growers felt it is necessary as a part of
long term strategy to develop backward and forward direct marketing
linkage in the interest of farmer and growth of industries.

 To find out viability in business through contract farming. Entrepreneur

(buyer)said he is looking for more area for cultivation (at present farming
area is 400-500 Bigha but for project viability required at least 4000-5000
Bigha faming of potato) though contract farming. He has also mentioned
that constant and regular supply of potato is major issue for uninterrupted
business process activity.

 As per entrepreneur’s feed back farmers are not educated so they do not
know meaning of high yield and have difficulty in adoption, that’s why
they are not able to reduce cultivation cost which is a big barrier of
Competitiveness in comparison of UP and Uttranchal and other states.
 Due to lack of awareness farmers are not getting good quality of seeds,
pesticides, fertilizers and other inputs on right price that’s why there yield
and quality is inferior but entrepreneur has good analytical capacity,
negotiation skills and purchasing power to buy such input on very
competitive price to reduce cultivation cost. in this case farmers
production cost is three rupee fifty paisa and selling price is six rupee at
farm gate but as a part of future strategy by supplying good quality input
cost will reduce further for farmer and a result farmer will be able to get
more profit in percentage.

 Entrepreneurs are also insisting to go for two crop of potato in a year

through contract farming so it will give more money to farmers as well as
entrepreneurs.

 Entrepreneurs are also seeking some infrastructural help from govt. they
said shortage of industrial land is a problem for future expansion of
industry simultaneously Cold Storage and Transportation facility of
Potato from Naogaon and other districts of Assam is also required to
develop contract farming in whole state of Assam. This infrastructure
could be useful for Farmers, SHG, NGO, and Industrialist on payment
basis.

 As discussed with farmers they expressed satisfacton with present buy

back agreement with entrepreneurs. Farmers are very much interested to
introduce contract farming in other crops like, Tomato, Brinjal, Areca,
Assam Lemon, Banana etc.

 Even at the same time market price of potato was much higher than
contract price for example contract price was Six Rupee per k.g and
market price was Eight Rupee per k.g. but farmer felt they are in better
position by selling through contract farming.

 For the purpose of cost reduction they have expressed that they need
constant supply of electricity so they can use electric pump set for
irrigation. They said diesel is very expensive in comparison of electricity
to reduce farming cost.
  Farmers are also facing a problem which is drainage of rain/flood water in
Naogaon district. they said proper water drainage in Kolong river can
increase our production and profit

This is a small case of linking the farmers with the processor. As discussed
the farmers need to be trained in better production techniques, marketing,
handling and packaging, using market information to be able to sustain the
arrangement on long term
 Annexure V

Organic Joha Rice Cultivation

in Mantigiri and Harisinga villages of Udalguri district of Bodoland

Joha Rice Introduction

The cultivators of Mantigiri and Harisinga villages were cultivating Joha rice
(scented rice) in about 300 hectares of land. The Agricultural Development Officer of
Udalguri Autonomous Tribal district encouraged the cultivators to grow Joha rice
(scented rice) adopting organic method of cultivation; A society called organic rice
cultivators’ society was formed. Seventy five cultivators of Joha rice enrolled themselves
as the members of this society. Now Joha rice is cultivated in 35 hectares strictly
following the organic method of cultivation.
Already Joha rice cultivation was going on in these villages for a long time. In the
first year organic method of cultivation was followed in 30 hectares of land. In the first
year the cultivators got price of Rs.350.00 per quintal of Paddy. This price was very low.
For the initial 3 years the cultivation was confined to 30 hectares only. Export of the
organic Joha rice started from the fourth year and the area also increased to 35 hectares.
In 2006-2007, 17.5 tones of rice was exported.

Milling and certification

Joha paddy used to be milled at Udalguri husking mill. But the purchasers were not
satisfied with the milling at Udalguri husking mill. Then the milling was shifted to green
valley Rice mill at Amingaon, which is a computerize mill. The entire processing and
packaging work is to be certified by a certified company. The S.G.S. Company (Standard
General Services) company, Calcutta was approached for certifying their rice. Cost of
certification for one year is Rs.8000.00. Assam governments’ Agricultural Department
bore this certification cost. The entire certified quantity of Rs.17.5 metric tones was sent
to M/S SUN STAR, company Delhi. This SUN STAR Company exported this rice to
Europe.

Various visits including the representatives of APEDA also visited mills at

Udalguri. The APEDA experts and representatives of SUN STAR Company, Delhi
inspected the computerized milling at S.G.S. mill at Amingaon. If not milled properly
the SUN STAR Company, Delhi was not willing to purchase their rice. Then milling
started at S.G.S. rice at Amingaon. Instead of buying milled rice they wanted to buy as
Paddy and get the Paddy milled at Mr. Ajoy Katiyr mill at Panipat. But selling Paddy
was not profitable for the cultivators. Department of Agriculture, Government of Assam,
helped in certification process certification cost Rs.8000.00 for one year which was paid
by Government of Assam.
Some of the participating cultivators were taken out on a exposure visit to Haryana.
There they learnt how the milling is to be done and how to organise cultivation of
organic rice how field management for organic production to be done.

All the small farmer brings their produce to one place i.e. the house of a big farmer,
who is the group manager. He guides the small farmers how the field management is to
be done. At present Sonepat miller M/S Ajoy Katiyr’s. Rice mill at Sonepat has entered
into a contract with the producers here to buy the entire production of all the farmers
here, who cultivate Joha rice under organic method.

Exporter of Joha rice

In 2006-2007, 17.5 metric tones of organic Joha rice was exported. All the small
producers got Rs.500.00 per maund of 40 kg or Rs.1250.00 per quintal of Paddy. Mr.
Netra Sharma, the secretary of the farmers’ group purchased the entire production from
all the small producers @ Rs.1250.00 per quintal of Paddy. One group of farmers last
year visited West Bengal to see for themselves the field management techniques. A
buyers and sellers meet was also organized at Guwahati in 2006. The farmers also went
to Bangalore and Delhi. Two farmers went to Delhi to exhibit their organic Joha rice in
expo exhibition at Delhi but could not do so as stall was not available.In the following
table village wise number of organic farmers and area in hectares under organic Joha
rice cultivations is shown

Name of village No. of farmers Production Area in hectares

Ulubari 32 16.78
Guborisali 24 12.48
Gagaldubi – Barkhetia 33 11.75
Harisinga 35 30.00
Pithakhowa 30 20.00
Total 154 91.01

Price of paddy
At the Guwahati market price for Paddy, the grower was paid at the rate of
Rs.1500.00 (Rs.600.00 per 40 kg Paddy + Rs.20.00 as carrying cost). The certificate was
valid up to 31st December 2007. The validity of the certificate solely depends on the
organization’s continued compliance to indicated standards, which is subject to annual
surveillance inspection.
The certificate is valid for those products and areas that have been specified in the
annexure of the certificate. Certificate no is 7060A.
Production and Demand
Production of organic Joha paddy is 9 quintals per bigha i.e. 90 quintals per
hectares. The agreed purchase price was Rs.1600.00 per quintal of Joha paddy at
Guwahati. There is a huge demand for this aromatic rice. But the SUN STAR Company
purchased Joha rice at the rate of Rs.30.00 per kg. Now there is a competition amongst
buyers for buying this organic Joha (aromatic) rice. M/S Jaiprakash & co of Guwahati
agreed to pay higher price. M/s Katiyr Haryana agreed to pay Rs.20.00 per quintal
higher. This programme started in 2004 and is continuing up till now and has created a
very good response & demand in the market.
 Reference
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development, AGSF, Occasional Paper 7, FAO, 2005.

3. Dixie, Grahme,2005, Marketing extension guide-Horticultural Marketing,

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(2002-2007) Assam State Agricultural Marketing Board, Guwahati.

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